RBS and Citigroup cancel $45m order for luxury jets

20 March 2009

Private jet manufacturer Dassault Aviation has reported a sharp fall in sales on the back of the collapse of the financial markets.

The French manufacturer revealed a number of cancellations in its results including orders worth a combined US$45m being pulled by Royal Bank of Scotland and Citigroup.
Citigroup cancelled orders for three Falcon 7X jets, according to Dassault’s civil aerospace chief Olivier Villa.

The cancellation is understood to have been in February, according to The Telegraph. It follows public outrage after it was revealed Citigroup was about to take delivery of one of the $45m jets following a $45bn bail-out from the US government.

The group sparked further outcry after it was revealed that the bank is set to spend up to $10m redesigning the executive suite at its Park Avenue headquarters in New York.

The bank defended the project, which will see leading executives move from two floors to “smaller, simpler offices” on one floor, saying the move will save $20m over the life of the plan as it leases out the second floor.

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Meanwhile RBS ditched plans to buy a long-range Falcon 7X, worth around £31m, for Sir Fred Goodwin, the former chief executive, and his management team.

The Falcon 7X would have replaced RBS’s existing jet but the order was cancelled.

A spokesman for RBS said the cancellation was a “company decision” and was made before Mr Hester was appointed to replace Sir Fred.

RBS moved to dismiss fears that the taxpayer would have to fork out for the deposit on the jet by insisting the order was sold on to another party. The bank refused to disclose the buyer.——-